Description

Travel and Tourism in Brazil to 2020 Description

SummaryAfter recording strong growth in 2014 thanks to the FIFA World Cup, Brazil’s inbound tourism returned to normal levels. The outbreak of the Zika virus in the country had an adverse impact on international arrivals and, on the whole, total inbound trips fell by -1.6% in 2015. International departures also declined in 2015 due to a weak real, which made outbound trips costlier. Along with weak economic growth, this facilitated the growth of domestic tourism, which expanded by 6% in 2015. Over the forecast period (2016–2020), domestic trips are expected to grow at an average annual rate of 7.3% to reach 340.7 million by 2020. Inbound trips are projected to increase from 6.3 million in 2015 to 8.4 million by 2020. Outbound trips are forecast to expand at a CAGR of 2.1%, rising from 8.5 million in 2015 to 9.4 million by 2020.

Key FindingsIn December 2015, the Brazilian Government announced a visa waiver for tourists from Australia, Canada, the US, and Japan to attract more visitors to the Olympics. The waiver will be valid between June 1 and September 18, 2016. The move is expected to increase visitors from these nationalities to Brazil by 20%; tourists will be able stay in Brazil for up to 90 days

The decreased economic activity resulted in fewer business travelers to Rio de Janeiro city and the Zika virus has only made the situation worse. In readiness for the Olympic

Games, there was an increase in room supply in the Rio de Janeiro state; more than 4,000 rooms opened in 2015. However, increasing supply and decreasing travelers means the occupancy rate decreased from 72% in 2014 to 62% in 2015. The Olympic games (to be held in August 2016) is expected to attract more tourists to the city, and occupancy rates and ADR are likely to increase in 2016